This is an Exclusive Report by Nation.
A three-month countrywide research uncovers a widespread price hiking by pharmaceutical outlets, with essential medication being marked up by over 300% above recommended retail prices. This exploitation is being attributed to either lack of or non-working regulations in the free-market system, leaving countless Kenyans struggling to afford life-saving treatments, sometimes leading to skipped medication and even death.
According to the exclusive research by Nation Health, Kenya’s free-market drug pricing policy, while aiming for competition, has resulted in patients paying exorbitant prices.
“The choice is stark: pay whatever is demanded for life-saving medication or skip the prescription, potentially risking their health or even their lives,” reads a section of the newly released report.
Further, it has been established that there’s an alarming lack of logic in drug pricing, which is steered solely by profit maximization. Prices vary significantly depending on the seller, location, and even the buyer’s appearance, mode of transportation and insurance status.
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“Patients with insurance cards were charged more than those paying cash, and even the same drug from the same supplier could have different prices in different pharmacies or even within the same hospital. Even pharmacies sharing walls and hospitals within the same region offer wildly different prices for the same medications,” the report says.
Drugs found to be subject to this predatory pricing and hoarding include neonatal antibiotics, drugs for anaemia and respiratory infections, and diabetes medications. In some cases, the price is inflated over three times, placing these vital medications firmly out of reach for the average Kenyan.
A pharmacist in Nairobi says the disparity is brought about by different factors including the cost of running the business, rent, cost of labor and the procedure of acquiring drugs.
“A pharmacy business in Lavington, Nairobi that probably pays a rent of KSh. 200,000 will use patients to offset that bill. There is also the cost of labor, arising from the fact that some pharmacies are owned by pharm techs and run by qualified pharmacists, while others hire quacks.
This cheaply acquired labor is dangerous because these quacks will not guide the patients in terms of pharmaco-vigilance, drug interactions, food and drug interactions and more. When you go to a qualified pharmacist who is paid a premium, it will be quite expensive. Their quality of service reflects on the pricing.
Nairobi County charges small pharmacies about KSh. 50,000 for annual license fee up from KSh. 22, 000. We are also charged separate annual license fees by the Pharmacy and Poisons Board and the county government. Besides, some people acquire the drug on credit, others get the drugs via dubious means, while others pay with cash. If you pay with insurance, the pharmacist is going to be paid after 90 days, without interest. The person doing the legit business is going to be pressed to transfer the cost to the patient,” he says.” he says.
Often, patients are instructed by medics to buy life-saving commodities from private pharmacies that are strategically positioned outside such facilities.
A pharmacist in Kisumu, who requested anonymity, explains that the prices are also largely influenced by a pharmacist’s ability to negotiate with suppliers to get a better deal and the amount of supply they order.
The survey recommends that the government investigates options in the private sector to increase pricing transparency and consequently reduce medicine prices while undertaking further research into pricing structures of other medicines in other locations.
The government has also been tasked to enforce price declarations on imported medicines and develop transparency in pricing and procurement systems.
